DUTY ENTITLEMENT PASSBOOK SCHEME (DEPB)
The Duty Entitlement
Passbook Scheme is a part of Duty Remission Scheme.
For exporters not desire
of going through the licensing route, an optional facility is given under DEPB.
objective of DEPB is to neutralise the incidence of Customs duty on the import
content of the export product. The
neutralisation shall be provided by way of grant of duty credit against the
DEPB scheme will continue to be operative until it is replaced by a new scheme
which will be drawn up in consultation with exporters.
the DEPB scheme, an exporter may apply for credit, as a specified percentage of
FOB value of exports, made in freely convertible currency or the payment made
from the Foreign Currency Account of the SEZ unit in case of supply by DTA to
credit shall be available against such export products and at such rates as may
be specified by the Director General of Foreign Trade by way of public notice
issued in this behalf, for import of raw materials, intermediates, components,
parts, packaging material etc. The credit may also be utilized for payment of
Customs Duty on any item which is freely importable.
The holder of DEPB shall have the option to pay additional customs duty, if any,
in cash as well.
validity period of DEPB for import shall be as prescribed in the Handbook of
DEPB and/or the items imported against it are freely transferable. The transfer
of DEPB shall however be for import at the port specified in the DEPB, which
shall be the port from where exports have been made.
from a port other than the port of export shall be allowed under TRA facility as
per the terms and conditions of the notification issued by Department of
the exports made under the DEPB Scheme shall not be entitled for drawback.
However, the additional customs duty/excise duty paid in cash or through debit
under DEPB shall be adjusted as CENVAT Credit or Duty Drawback as per rules
framed by the Department of Revenue.
of Duty Credit
duty credit under the scheme shall be calculated by taking into account the
deemed import content of the said export product as per SION and the basic
custom duty payable on such deemed imports. The value addition achieved by
export of such product shall also be taken into account while determining the
rate of duty credit under the scheme.
of DEPB Rate
Niryaat Form’ prescribes the form regarding fixation of DEPB rates. All
applications for fixation of DEPB rates shall be routed through the concerned
Export Promotion Council which shall verify the FOB value of exports as well as
the international price of inputs covered under SION.
encourage diversification and to promote export of new products, the DEPB
Committee would be empowered to notifying provisional DEPB rates. However, such
DEPB rates would be valid for a limited period of time during which the exporter
would furnish the data on export and import for the regular fixation of rates.
in anticipation of DEPB Rate
exports shall be allowed under DEPB scheme unless the DEPB rate of the concerned
export product is notified.
exports/imports made from the specified ports given shall be entitled for DEPB.
Kolkata, Cochin, Dahej, Kakinada, Kandla, Mangalore, Marmagoa, Mundra, Chennai,
Nhavasheva, Paradeep, Pipavav, Sikka, Tuticorin Vishakhapatnam, Surat (Magdalla),
Nagapattinam, Okha , Dharamtar and Jamnagar.
Bhubaneshwar Mumbai, Kolkata Coimbatore Air Cargo Complex, Cochin, Delhi,
Hyderabad, Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur and Chennai.
: Agra, Ahmedabad, Bangalore,
Bhiwadi, Coimbatore, Daulatabad, (Wanjarwadi and Maliwada), Delhi, Dighi (Pune),
Faridabad, Guntur, Hyderabad, Jaipur, Jallandhar, Jodhpur, Kanpur, Kota,
Ludhiana, Madurai and the land Customs station at Ranaghat Mallanpur, Moradabad,
Meerut Nagpur, Nasik, Gauhati (Amingaon), Pimpri (Pune), Pitampur (Indore),
Rudrapur (Nainital), Salem Singanalur, Surat, Tirupur, Udaipur, Vadodara,
Varanasi, Waluj, Bhilwara, Pondicherry ,Garhi-Harsaru, Bhatinda, Dappar,
Chheharata ( Amritsar), Karur, Miraj and Rewari.
Ranaghat, Singhabad , Raxaul ,
Jogbani, Nautanva ( Sonauli), Petrapole and Mahadipur.
exports made to the following Special Economic Zones (SEZ) are also entitled to
SEZ : Santacruz , Kandla, Kochi, Vishakhapatnam, Chennai, FALTA, Surat,
further that the Commissioner of Customs may, either by a public notice or on
the written request of the exporter/ DEPB holder, by special orders and subject
to such conditions as may be specified by him permit imports or exports from any
other sea port, airport, inland container depot or through a Land Customs
DEPB shall be issued with single port of registration, which will be the port
from where the exports have been effected.
Custom House at the ports shall maintain a separate record of the details of the
exports made under the DEPB shipping bill.
Credit under DEPB
and Present Market Value
respect of products where the rate of credit entitlement under DEPB Scheme comes
to 10% or more, the amount of credit against each such export product shall not
exceed 50% of the Present Market Value (PMV) of the export product. At the time
of export, the exporter shall declare on the shipping bill that the benefit
under DEPB Scheme against the export product would not exceed 50% of the PMV of
the export product. However, PMV
declaration shall not be applicable for products for which value cap exists
irrespective of the DEPB rate of the product.
Utilisation of DEPB
credit under DEPB shall be utilised for payment of customs duty on any item
which is freely importable.
An application for grant of credit under DEPB may be made to the Regional
Authority concerned in the form given in ‘Aayaat Niryaat Form’ alongwith the
documents prescribed therein. The agency commission shall be allowed for the
DEPB entitlement upto the limit of 12.5% of FOB value only. The FOB value in
free foreign exchange shall be converted into Indian rupees as per the exchange
rate for exports, notified by Ministry of Finance, as applicable on the date of
order of “Let Export” by the Customs.
respect of consignment exports wherein the exporter has declared the FOB value
of the product on a provisional basis, the exporter shall be eligible for final
assessment of such shipping bill based on the actual FOB realised upon sale of
such goods in freely convertible currency. The agency commission shall be
allowed for the DEPB entitlement upto the limit of 12.5% of FOB value only.
However, the FOB value of foreign exchange shall be converted into Indian rupees
as per the exchange rate for exports, notified by Ministry of Finance, as
applicable on the date of order of “Let Export” by the Customs.
application for grant of credit for supplies from DTA to SEZ can be made by the
DTA unit or the SEZ unit. The DTA unit may claim the benefits either from the
Regional Authority or the Development Commissioner concerned. In case claim have
been filed with the Regional Authority, the Regional Authority while allowing
the benefits to the DTA unit will simultaneously endorse a copy of the
communication to the concerned Development Commissioner alongwith the details of
export documents against which benefits have been allowed for confirmation of
the transaction involved. In case the DTA supplier prefers claim with the
Development Commissioner, the Development Commissioner shall verify the Denied
Entity List (DEL) status of the supplier from the DGFT website before allowing
DEPB benefits. The SEZ unit will file application with the Development
Commissioner concerned in ‘Aayaat Niryaat Form’ along with the following
1. Bank receipt (in duplicate)/ demand draft evidencing payment of
application fee in terms of Appendix 21B.
2. A copy of bill of exports issued by Customs in the SEZ.
3. A copy of invoice showing FOR value of supply, DEPB entitlement on such
supply and total value realised from such sale.
4. Bank certificate of realisation in the form given in Appendix 22B.
5. In case SEZ unit opts to apply for the DEPB benefit for such supplies
received, a disclaimer (along with the IEC of DTA Unit endorsed on it)
certificate from DTA unit declaring that the DTA unit shall not claim any
benefit on such supplies and authorising SEZ units to claim DEPB benefit on such
cases where the applicant applies for DEPB after realisation or shipments are
made against confirmed irrevocable letter of credit or bill of exchange is
unconditionally Avalised/ Co-Accepted/ Guaranteed by a bank and the same is
confirmed by the exporters bank and certified by the bank in the relevant Bank
certificate of export and Realisation, the DEPB shall be issued with
transferable endorsement. In other cases, the DEPB shall be initially issued
with non-transferable endorsement. Upon
realisation of export proceeds, such DEPBs can be endorsed as transferable, if
the applicant so desires.
The Regional Authorities shall monitor the cases where the DEPB has been granted
prior to realisation of export proceeds (except the cases where shipments are
made against confirmed irrevocable letter of credit or bill of exchange is
unconditionally Avalised/ Co- Accepted/ Guaranteed by a bank and the same is
confirmed by the exporters bank) so as to ensure that realisation takes place
within the prescribed time failing which they shall initiate action for recovery
of an amount equivalent to DEPB credit with 15% interest. The recovered amount
in such cases shall be deposited in the head of account of Customs as stated in
the export proceeds is not realised within six months or such extended period as
may be allowed by RBI, the DEPB holder shall pay in cash an amount equivalent to
the duty free credit utilised on imports, against such exports with 15% interest
from the date of import till the date of deposit. In such cases, where the
amount realised in foreign exchange is less than the amount on which DEPB credit
has been obtained, the holder of DEPB shall pay, in cash, an amount
proportionate to the duty free credit utilised on imports, with 15% interest
from the date of imports till the date of deposit.
The application for obtaining credit shall be filed within a period of twelve
months from the date of exports or within six months from the date of
realization or within three months from the date of printing/ release of
shipping bill , whichever is later, in respect of shipments for which the claim
have been filed.
provisional shipment has been allowed by the customs authorities, DEPB against
such exports shall be issued only after the release of the shipping bill by the
Customs. In such cases, application for DEPB shall be filed within six months
from the date of release of such shipping bill or six months from the date of
realisation, whichever is later.
All the shipping bills in any one application must relate to exports made from
one Custom House only. There is no limit on the number of shipping bills which
can be filed through EDI mode in a single application.
In case of EDI shipping bills before 1.10.2005 and non-EDI shipping bills, the
Regional Authority shall ensure that while issuing the DEPB, the Shipping Bill
No(s). and date(s), FOB value in Indian rupees as per Shipping Bill(s) and
description of export product are endorsed on the DEPB. Before allowing the
imports against such DEPB, the Customs shall verify that the details of the
exports, as given on the DEPB, are as per their records. However, in case of EDI
shipping bills issued on or after 1-10-2005 from EDI ports which are being
transmitted electronically by Customs to DGFT, the DEPBs issued shall be sent to
Customs at the port of registration through an electronic message exchange
system and the DEPB shall be registered at the port of registration
electronically. No verification of shipping bills against which such DEPBs have
been issued, will be required before allowing imports against these DEPBs.
No revalidation shall be granted beyond the original period of validity of DEPB
unless it expires in the custody of the Regional/ Customs Authorities as per the
provisions under para 2.13 of the Handbook.
of goods imported under DEPB Scheme
imported under DEPB scheme, which are found defective or unfit for use, may be
re-exported, as per the guidelines issued by the Department of Revenue. In such
cases 98% of the credit amount debited against DEPB for the export of such
goods, shall be generated by the concerned Commissioner of Customs in the form
of a Certificate, containing the amount generated and the details of the
original DEPB. Based on the certificate, a fresh DEPB shall be issued by the
concerned Regional Authority. The fresh DEPB, so issued, shall have the same
port of registration and shall be valid for a period equivalent to the balance
period available on the date of import of such defective/unfit goods.
of DEPB and other duty credit certificates/ DFRC against lost EP copy of the
case where EP copy of the Shipping Bill has been lost, the DEPB
and other duty credit certificates /DFRC claim can be considered
subject to submission of the following documents:-
A duplicate/certified copy of the Shipping Bill issued by the Customs Authority
in lieu of original;
An application fee equivalent to 2% of the DEPB or other duty credit entitlement
or 1% of DFRC entitlement, as the case may be, in respect of lost Shipping
no fee shall be charged when the Shipping Bill is lost by the Government
agencies and a documentary proof to this effect is submitted;
An affidavit by the exporter about the loss of Shipping Bills and an undertaking
to surrender it immediately to the concerned Regional Authorities, in case the
same is found subsequently.
An indemnity bond by the exporter to the effect that he would indemnify the
Government for the financial loss if any on account of DEPB or other duty credit
certificate /DFRC issued against lost Shipping Bills.
Customs Authority, before allowing clearance, shall ensure that no DEPB/DFRC
benefit has been availed against the same shipping bill.
claim against the lost Shipping Bill shall be preferred within a period of six
months from the date of release of duplicate copy of shipping bill and any
application received thereafter will be rejected. However, if a provisionally
assessed DEPB shipping bill is lost, the time period for filing an application
for DEPB would be six months from the date of release of the finally assessed
Loss Of Original
In such cases where original bank certificate has been lost, the DEPB/DFRC claim
can be considered subject to submission of following documents:
A duplicate copy of the Bank Certificate issued by the bank authority in
lieu of original loss.
An application fee equivalent to 2% of the DEPB entitlement or 1% of DFRC
entitlement, as the case may be, in respect of lost Bank Realisation
An affidavit by the exporter about the loss of Bank Certificate and an
undertaking to surrender it immediately to the concerned Regional Authorities,
in case the same is found subsequently.
An indemnity bond by the exporter to the effect that he would indemnify
the Government for the financial loss .if any
on account of DEPB/DFRC issued against lost Bank Certificate.
claim against the lost Bank Certificate shall be preferred within a period of
six months from the date of realisation and application received thereafter will
such cases, where both the documents have been lost, the exporter shall follow
the procedure laid down in paragraphs “Re-export of Goods Imported under DEPB
Scheme” and “Issurance of DEPB/DFRC
against lost EP copy of the Shipping Bill” above .